Rising Bank Rates: 42% of Nigerians Decry High Loan Costs – CBN Survey
ABUJA — Nearly half of Nigerian consumers are feeling the pinch of tightening credit conditions, with 42.7% of respondents identifying bank loan interest rates as “high” over the past quarter.
According to the Central Bank of Nigeria’s (CBN) Consumer Expectation Survey for February 2026, the rising cost of borrowing remains a significant concern for households, even as general economic optimism persists.
Key Highlights: Borrowing and Preferences
The report highlights a growing disconnect between consumer needs and current lending realities.
-
The Burden: 42.7% of respondents perceived interest rates as high over the last three months.
-
The Demand: Public appetite for cheaper credit is surging, with 63% of respondents explicitly calling for a decline in interest rates.
Economic Optimism vs. Personal Reality
While the macro-economy received a “thumbs up” from many, the sentiment at the kitchen table tells a different story.
-
Broad Optimism: The Economic Condition Index hit 7.2 points, marking four consecutive months of positive outlook on the national economy.
-
Personal Struggles: Despite the national outlook, the Family Financial Situation Index plunged to -9.1 points. This negative figure indicates that Nigerians are increasingly pessimistic about their actual household wealth and liquidity.
-
Declining Sentiment: The overall Consumer Sentiment Index dipped significantly from 2.8 points in January to 0.8 points in February, suggesting that the “feel-good factor” is beginning to evaporate.
The Inflation Outlook
Price stability remains a major pain point for the average Nigerian. The survey revealed:
-
Price Perception: A sentiment index of -9.9 points on price changes suggests that most consumers believe current prices are still too high.
-
The 6-Month Forecast: Nigerians are bracing for more impact. The index for expected price increases over the next six months jumped to 36.8 points, signaling fears of further inflation.
Note on Moderation: One small silver lining appeared in the “food and household items” category, where the index sat at -0.6 points, suggesting consumers feel prices in that specific niche are beginning to moderate downward.
